The Chartered Institute of Stockbrokers (CIS) has urged investors and policymakers not to view FTSE Russell’s decision to defer Nigeria’s reclassification to Frontier Market status as a setback.
The industry body emphasized that the country’s transition to a T+1 settlement cycle remains a critical structural reform, regardless of the index provider’s timeline.
FTSE Russell previously suspended the upgrade process, citing concerns over the operational readiness of the new settlement framework.
Nigerian securities dealers have since mounted a coordinated defense of the T+1 shift, arguing that the infrastructure is robust and that the index provider’s assessment does not reflect the current state of market operations.
The dispute highlights the tension between local market reforms and global index methodology.
For Nigerian equities, inclusion in the Frontier Market index is a key catalyst for foreign inflows and liquidity.